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Help me wit dis (personal finance)

Help me wit dis (personal finance)-example-1
User Channae
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2 Answers

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Answer

B. After Taxes

Step-by-step explanation:

In general, when you make a withdrawal from your 401K before you reach age 59 ½, the Internal Revenue Service may charge you a 10% early withdrawal penalty. You'll also pay taxes on any amounts you cash out because these funds come directly from your pre-tax income.

User Jakobdo
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Answer:

B: After Taxes

Step-by-step explanation:

A: A pre-tax deduction is money that is taken out of your employee's gross pay before any taxes are withheld from their paycheck. Pre-tax deductions reduce an employee's taxable income, which means they will likely owe less income tax and/or FICA tax (which includes Social Security and Medicare).

B: After-tax income is the net income after the deduction of all federal, state, and withholding taxes. After-tax income also called income after taxes, represents the amount of disposable income that a consumer or firm has available to spend.

C: The federal government also deducts money as your contribution to its Social Security and Medicare programs. You'll be required to give a percentage of your income, currently 6.2% for Social Security and 1.45% for Medicare, to help fund these programs.

D: The Social Security tax rate in the United States is currently 12.4%. However, you only pay half of this amount, or 6.2%, out of your paycheck -- the other half is paid by your employer

User Evgenia
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